Relating to retirement financial savings, 401(ok) plans are a well-liked choice. These plans enable staff to economize on a tax-advantaged foundation, and lots of employers provide matching contributions. However does employer match rely towards the 401(ok) restrict?
The reply is sure, employer matching contributions do rely towards the 401(ok) restrict. Which means that the overall sum of money which you could contribute to your 401(ok) every year is the sum of your personal contributions and your employer’s matching contributions. For 2023, the 401(ok) contribution restrict is $22,500 ($30,000 for these age 50 and older). This restrict consists of each worker contributions and employer matching contributions.
